Here's Why One Investor Bought $4.6 Million in Short-Term Bonds ETF

Amplius Wealth Advisors, LLC disclosed a purchase of the VictoryShares Short-Term Bond ETF (USTB) valued at an estimated $4.6 million, according to an SEC filing released on Tuesday.

What Happened

Pennsylvania-based Amplius Wealth Advisors reported purchasing 90,135 shares of the VictoryShares Short-Term Bond ETF (NASDAQ:USTB) in its 13F filing with the Securities and Exchange Commission (SEC) for the period ended September 30, filed on Tuesday. The estimated transaction value was $4.6 million, bringing the fund’s total holding to 762,893 shares valued at $38.0 million as of quarter-end.

What Else to Know

USTB’s share of reportable AUM was 3.4% as of September 30, placing it outside the fund’s top five positions.

Top holdings after the filing:

• CBOE:AAAA: $234.5 million (20.3% of AUM)
• NYSEMKT:PVAL: $85.7 million (7.4% of AUM)
• NYSEMKT:RECS: $64.6 million (5.6% of AUM)
• NYSEMKT:TMFC: $63.6 million (5.5% of AUM)
• NYSEMKT:STIP: $48.5 million (4.2% of AUM)

As of Monday, USTB shares were priced at $50.96, down 1% over the past year.

ETF Overview

ETF Snapshot

• USTB's investment strategy centers on maintaining at least 80% exposure to short-term debt securities and related derivatives, with a focus on a dollar-weighted average portfolio maturity of three years or less.
• Its underlying holdings primarily consist of U.S. and foreign fixed income securities, with up to 20% allocation to non-U.S. dollar-denominated and emerging market bonds.
• Structured as an exchange-traded fund, the fund offers a competitive yield and diversified bond exposure.

The VictoryShares USAA Core Short-Term Bond ETF (USTB) is a short-duration fixed income ETF that primarily invests in debt securities with a dollar-weighted average portfolio maturity of three years or less.

Foolish Take

Amplius Wealth Advisors’ third-quarter move into the VictoryShares Short-Term Bond ETF (USTB) suggests a calculated tilt toward stability after calibrating several growth-heavy positions. The Pennsylvania-based firm bought about 90,000 shares worth an estimated $4.6 million, lifting its total stake to more than 760,000 shares valued at $38 million as of September 30.

USTB, which carries a 4.48% 30-day SEC yield and an effective duration of just 1.74 years, gives Amplius near-term yield potential with limited interest-rate sensitivity. The ETF has outperformed its passive benchmark on a rolling three- and five-year basis, according to Victory Capital.

Amplius’ strategy aligns with its disciplined approach to risk-managed, tax-efficient portfolios. Rather than abandoning equities, the firm appears to be anchoring portfolios with shorter-duration bonds that help smooth volatility after a strong year for growth stocks. For long-term investors, this move reinforces the case for pairing equity exposure with high-quality fixed income during uncertain rate environments.

Glossary

13F filing: A quarterly report required by the SEC from institutional investment managers detailing their equity holdings.

AUM (Assets Under Management): The total market value of assets an investment manager handles on behalf of clients.

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Short-term bond: A bond with a maturity of typically three years or less, offering lower risk and yield than longer-term bonds.

Dollar-weighted average portfolio maturity: The average time until bonds in a portfolio mature, weighted by each bond's value.

Fixed income securities: Investments that pay regular interest, such as bonds, providing predictable income streams.

Dividend yield: The annual dividend income expressed as a percentage of the investment's current price.

Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Emerging market bonds: Bonds issued by governments or companies in developing countries, often with higher risk and yield.

Reportable AUM: The portion of total assets under management that must be disclosed in regulatory filings.

Derivatives: Financial contracts whose value is based on the performance of underlying assets, such as bonds or interest rates.

TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.